Six years ago, I began working with one of my dearest clients ó a widow in her late 80s and sharp as a tack. She understood the importance of having her financial affairs in order through the experience of her husband passing away. Her goal was to move her assets to her loved ones without any issues.

This was a unique challenge because one child in her 50s was fighting cancer and the other had been in a nursing home for quite some time. Several years went by and she passed away very peacefully.

In just a few months her daughter died of non-smoking lung cancer. Thankfully, over the years she and her family had made some very important decisions and prepared the legal documents to execute those decisions.

By now you are probably asking yourself why I am telling you this story. Iím telling you because it was a not-so-gentle reminder about the importance of having financial affairs in order. Here are a few things Iíd like you to consider doing now, while you and your loved ones are still healthy:

Consolidate accounts. You can control your own affairs longer if we have to deal with only one bank and one brokerage account per month. Moreover, if and when you do need help, we will have made your caretakerís job simpler.

Customize a Health care Power of Attorney. This document states what medical procedures you do and donít want to prolong your life.

Sign forms while you can. If you put off executing crucial documents for too long, questions might be raised later about whether you were still legally competent to sign those papers.

Pick people to act on your behalf with care. You will need to sign separate power of attorney documents designating those you wish to make financial and health care decisions for you. Make sure the people or institutions that you pick are willing and able to handle routine matters over a long period. Name multiple successors. That way if one person canít or wonít act, someone else that you trust is ready to step in.

Use temporary or limited powers. Consider signing a separate power of attorney giving someone only limited powers during those periods when you are temporarily incapacitated such as sporadic hospitalizations. For example, this person would be able to pay your bills and file your taxes but not sell your house or make gifts of your assets.

Set up an appointment to discuss your wishes with a trusted adviser and feel assured that your investments, your income, and your cash flow needs can be met in any circumstances.

The possibility of debilitating illness is not a particularly pleasant subject to tackle, but as a financial adviser, I would be remiss if I ignored this important subject. The sooner we develop a plan for situations like this, the better we will be able to cope when a crisis arises.

Page 2 of 2 - Ryan Schrift is a financial adviser and owner of R.J. Schrift Private Asset Management in Belmont. He can be reached at 704-461-8847. This information is not intended to be a substitute for specific individualized tax or legal advice. Please note that individual situations may vary.